Divorce Questions About Mortgage Liability

Title to real estate and leasehold interest are an integral issue subject to court jurisdiction in any divorce case. The court may partition title, or alternately, award ownership solely to one spouse. Most often, an agreed compromise is far better than allowing the court to act without guidance. In many circumstances, if spouses cannot agree, both are disappointed with court divisions. Nevertheless, if title is awarded to only one spouse, a mortgage company, that is not a party to the divorce, is unaffected from their point of view. Both spouses still remain liable for full payment, because of lack of privity with the decree.